Housing associations in inner city Liverpool have been left at financial risk by a devastating collapse in demand, according to a shock report on the state of the city鈥檚 housing markets.
More than 11,000 homes will have to be demolished in an area covering less than a quarter of Liverpool, the study, by Birmingham university鈥檚 centre for urban and regional studies, says. In the worst affected areas, 40 per cent are owned by RSLs.

The report says the collapse of Liverpool鈥檚 鈥渋nner core鈥� would have been worse if housing associations had not propped up the area.

It says that Liverpool鈥檚 RSLs have prevented market collapse, but their commitment to failing neighbourhoods has left them 鈥渟eriously exposed鈥�. This may not be sustainable in the medium term, it warns.

Liverpool council said the report supports its claim for the market renewal fund.

An action plan with Sefton and Wirral councils is being created, so the councils will be ready to start work immediately if the government gives it the green light. Last week, the cross-party DTLR select committee backed calls for the 拢8bn, 10-year fund (Housing Today, 21 March).

Executive member for housing Richard Kemp said local communities had already consented to demolishing 11,000 homes across the city.

鈥淭hese new numbers are deliverable,鈥� he said. 鈥淏ut without a budget we cannot go into new areas because that would raise expectations that we cannot meet. We have reached the limit.鈥�

Liverpool Housing Trust chief executive David Bebb said associations were suffering in a policy void. 鈥淭he problem of restructuring markets cannot be solved by more efficient administration.

鈥淲e have stuck with these areas but managing decline is a very expensive business,鈥� he explained.

LHT loses 拢2m of rental income a year on empty homes, and spends 拢500,000 on security and council tax.

鈥淲e get sympathy but there is no funding stream to recognise that cost,鈥� Bebb said.

Source

Housing Today